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Gibsons proposes 3 per cent increase

Council

Councillors in Gibsons will consider three readings of the 2017 budget May 2, after a committee meeting on Monday to look at capital projects, debt, and the overall tax increase.

The budget coming up for a vote May 2 will be based on a three per cent overall tax increase in an effort to put money into the ACFAR (annual cost for asset replacement) reserve, which will mean a 4.73 per cent increase for residential properties.

Figures presented by director of finance Ian Poole show that will increase the Town portion of the tax bill for a typical homeowner by $39.95. When the estimated school, Sunshine Coast Regional District, Hospital District, policing and other taxes are included, the increase is closer to $165.

The most costly major projects under consideration are tied to the recently announced federal-provincial funding for water and wastewater infrastructure. Those grants include the cost of repaving the roads after underground work, so director of engineering Dave Newman proposed combining improvement projects with the grant-funded work. Council’s committee of the whole is recommending nearly $1 million in improvements along Gibsons Way between Bals Lane and North Road, including sidewalks, multi-use paths and ditches and culverts.

The capital projects list also includes $150,000 for work at Armours Beach and $170,000 for “improvements/remediation” of the Town-owned geothermal utility that serves the Parkland subdivision.

Funding will come from tax revenue, reserves and around $1.8 million in new borrowing. The loans will require an alternative approval process (AAP).

At earlier budget meetings, Mayor Wayne Rowe said he has a natural aversion to the municipality taking on debt, and he made similar comments on Monday. “I have some angst about going forward with borrowing [nearly] $2 million, taking that out to the community, even though I can rationalize it given the interest rates and the retired debt [from previous years] ... We have to consider whether residents will support borrowing for road, sidewalk and culvert improvements to that magnitude”

Coun. Stanford Lumley, though, said he thinks people would understand that without the borrowing much of the work couldn’t be done – certainly not in conjunction with the grant-funded projects that will be going ahead this year. “It just wouldn’t get done otherwise,” he said. “I’ve been hearing about Gibsons Way forever, it almost seems to me like a no-brainer.”

Coun. Jeremy Valeriote said the Town should be wary about creating the impression that Gibsons Way is being favoured at the expense of other areas. “Will we set ourselves up for failure by leaving people on smaller roads out of this equation?” he asked.

At the suggestion of Coun. Silas White, some of the money earmarked for pavement work in 2018 is now included in the 2017 draft budget, adding $200,000 to the anticipated borrowing. One of the reasons is to be prepared in case the roads resurfaced with chip seal late last year need to be redone.

Rowe agreed. “Council wants to be in the position where if the chip seal doesn’t settle out the way we’re hoping it will, that we have some ability to do something about it.”

Poor weather caused problems with the chip sealing process, most notably on Seacot Way and Mountain View Drive, and residents have complained of loose gravel, potholing and dust. Newman told councillors that some of the problems could be covered under warranties with the contractors.

One item has been put off for a future decision. Valeriote has been hoping to get the rest of council onside with the installation of a electric vehicle charger at Town Hall or somewhere else in Lower Gibsons. That proposal will be considered later, after firm cost estimates are available.